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Payment plugins for WooCommerce merchants in the UK

Sakkun Tickoo Sakkun Tickoo - 7th Jun, 2024

Choosing a cost-effective WooCommerce payment plugin can significantly reduce operating costs and streamline cashflows for your business

Think of selecting a payment processor for your store as laying the foundation for your online business—it's vital to keep sales flowing smoothly while gaining shoppers' confidence and potentially increasing earnings from each sale (your average order value, or AOV).

At Wonderful, we understand how important it is to find payment solutions that are both inexpensive and trustworthy. Imagine the impact of instant settlement on your working capital and 95% savings on payment processing for your overall profitability if you get this part right!

Not sure which WooCommerce payment methods will suit you? We are here to lend you a helping hand! Let’s look at some amazing yet affordable WooCommerce payment plugins that will make your online transactions hassle-free.

What are the best WooCommerce payment plugins?

Wonderful

When it comes to low-cost WooCommerce payment plugins, Wonderful’s lucrative fee structure is a stand-out solution. This is particularly beneficial for start-ups and small businesses that are operating on a stringent budget. Wonderful's WooCommerce payment plugin also provides a suite of benefits, tailored to enhance your WooCommerce experience.

Low transaction fees: The monthly Plus Plan offers 2000 transactions at an incredibly low rate of £19.99. For every additional transaction, the charges are just 1p.

No hidden charges: Wonderful's subscription plans are completely transparent, hence, there are no unexpected charges once you subscribe.

Other benefits: By adding Wonderful's payment plugin to your WooCommerce store, you’ll receive the following additional benefits:

○     Instant payment

○     Less friction

○     Enhanced security

○     Seamless integration with existing systems

○     An association with significant social causes

PayPal

PayPal, one of the more popular WooCommerce payment plugins, doesn’t come cheap. They have a currency-based payment structure that may seem complicated for new online stores, however, their wide acceptance and rich features may make it worthwhile for some businesses to invest in them.

Standard fees: A tiered payment plan varies from 1.25%-2.90%+ £0.30 fixed fee per domestic transaction within the United Kingdom.

International fees: They charge 1.29%-1.99% additionally, along with the fixed charges for international commercial transactions.

Other features:

○     Recurring payments

○     Express checkout

○     Mobile-optimised user interface

○     Invoicing option

Stripe

A favourite among developers, Stripe offers useful features that are ideal for businesses looking for scalability and flexibility.

Standard fees: The standard package starts at 1.5% + 20p for UK cards and goes upto 2.5% + 20p for EU cards.

International charges: Outside the European Union, international card transactions are billed at 3.25% + 20p, with 2% extra for currency conversion.

Other features:

○     Volume discount

○     Multi-payment acceptance

○     One-click checkout

○     Comprehensive analytics

Square

The USP for Square is its unified payment method that supports both online and offline payments. This is beneficial for online stores that have physical outlets as well.

Standard fees: Square charges 1.4% + 25p for all UK card payments and 1.75% for contactless payments

International payments: The charge increases to 2.5% + 25p for non-UK cards.

Other features:

○     No hidden costs

○     Easy set-up process

○     Sales reporting

○     Inventory management

WooCommerce payments

Being a native feature, WooCommerce payments can be easily integrated into your platform. They also come with zero monthly charges, which allows you to start immediately.

Base fee: The basic charges for card-based transactions start at 1.5% + £0.25, which can go up to 6% + £0.30 for specific payment gateways.

International charges: Apart from the base fee, an additional 2% is levied on international card transactions. Also, another 2% is charged for currency conversion.

Other features:

○     Instant deposits

○     Fraud protection

○     Automated currency conversion

○     In-depth analytics

What are the best payment methods for WooCommerce?

WooCommerce payment gateways facilitate a wide range of payment methods. Whether it's credit cards or digital wallets, WooCommerce can seamlessly integrate multiple payment plugins to suit various requirements. We will explore a wide range of WooCommerce payment methods, such as credit cards, bank transfers, and more contemporary alternatives like Open Banking.

Open Banking

With Open Banking, you can now pay for your online shopping straight from your bank account- a new revolution in online transactions. Powered by secure open banking APIs you can experience fast bank transactions without card networks. Open Banking comes with the added perks of reduced transaction costs, enhanced security measures, and quicker processing than traditional payment methods. Shoppers enjoy a seamless buying journey as Open banking streamlines checkouts.

Ideal plugins:

●     Wonderful: If you own a WooCommerce store, you may accept payments through Open Banking using the Wonderful payment plugin. WooCommerce business owners looking to embrace Open Banking will find this payment plugin a perfect match with its affordable transaction fees, speedy processing, and robust security measures.

Digital wallets

For customers who prefer to use mobile devices for online transactions, digital wallets, such as Google Pay or Apple Pay are convenient options. They offer a layer of security by allowing you to sync your bank accounts or credit cards with the payment gateways, and they come with password protection.

Ideal plugins:

●     Stripe: Apart from supporting traditional card payments, Stripe easily integrates various digital wallets, which makes it a good choice for merchants who are looking to present wider payment alternatives to their customers.

●     WooCommerce payments: Despite being a native solution, WooCommerce payments allow single-touch payment through Apple Pay.

Bank transfer

Though bank transfers are losing their popularity, some customers still prefer to transfer funds directly from their bank account to the merchant’s account. For large-volume or B2B  transactions, bank transfers are considered a safe option.

Ideal plugins:

●     WooCommerce bank transfers (BACS): This in-built WooCommerce plugin allows you to accept direct bank transfers. Customers receive the merchant's bank details at checkout and have to complete the transaction on their bank’s online portal manually.

●     Direct bank transfer gateway: An alternative plugin that provides more features for managing bank transfer payments, such as automated email notifications and better order status management.

Buy now, pay later (BNPL)

This payment method is gaining increasing popularity as it allows flexible payment options. Buyers can buy now and pay later, often in interest-free installments. BNPL is particularly attractive for the younger generation, who like easy purchase options without incurring high-interest debts.

Ideal plugins:

●     Klarna: This is one of the leading BNPL service providers that integrates with WooComerce. Klarna offers attractive installment plans and deferred payment options that customers can instantly select at checkout.

●     Clearpay: Also known as Afterpay in other countries, this payment option comes with four interest-free installments for WooCommerce platforms. Customers can avail of easy BNPL options on WooCommerce sites that integrate with Afterpay.

How do you get paid on WooCommerce?

Setting up the WooCommerce payment plugin is an easy-to-implement process that will ensure seamless transactions through an efficient and secure platform. Let’s look at the step-by-step installation and activation guides for some of the popular payment methods.

Step 1: Install WooCommerce

Before we start with the payment setup process, ensure that you properly install WooCommerce on your WordPress portal. All you have to do is go to your WordPress dashboard, locate WooCommerce, and follow the simple steps for installing and activating the plugin.

Step 2: Decide on the payment method

We have discussed the benefits of various WooCommerce payment methods. You have to finalise a suitable option based on the current status of your business and future goals. Once we decide on your preferred payment mode from a wide range of choices, such as Open Banking, WooCommerce payments, BNPL, or any other method, you can follow the guidelines below to activate it.

1. Open Banking

Wonderful: We leverage our Open Banking capabilities, offering a secure and cost-effective payment option.

➢     Install the Wonderful plugin from the WooCommerce marketplace.

➢     Navigate to WooCommerce > Settings > Payments.

➢     Configure your account settings and enable Wonderful.

➢     Ad adhere to the setup instructions to link your bank account and enable Open Banking payments.

2. Credit and Debit Cards

A) WooCommerce Payments: This is a native payment solution, offering seamless integration and a comprehensive feature set. To set up Woo Payments:

➢     Go to WooCommerce > Settings > Payments.

➢     Enable WooCommerce Payments and follow the setup wizard to configure your account.

➢     Enter your business and bank details to start accepting card payments.

B) Stripe: A popular payment gateway known for its ease of use and wide range of supported payment methods.

➢     Install and activate the Stripe for WooCommerce plugin.

➢     Go to WooCommerce > Settings > Payments.

➢     Enable Stripe and enter your API keys from your Stripe account.

➢     Configure the settings as needed, including enabling Apple Pay and Google Pay if desired.

3. PayPal

PayPal: This is one of the most widely used payment methods and provides a secure platform.

➢     Activate and install the PayPal Checkout or PayPal Pro plugin.

➢     Navigate to WooCommerce > Settings > Payments.

➢     Enable PayPal and provide your PayPal account information.

➢     Configure the parameters for testing, such as the currency, payment action, and sandbox mode.

4. Bank Transfers

Direct Bank Transfer (BACS): Enables customers to transfer funds directly to the merchant’s bank account.

➢     Navigate to WooCommerce > Settings > Payments.

➢     Activate the Direct Bank Transfer (BACS) feature.

➢     Provide customers with the necessary information to complete the payment, including your bank account details.

➢     During the checkout process, customers will be presented with your bank details and required to transmit the payment manually.

5. Buy Now, Pay Later (BNPL)

Klarna: They provide a variety of payment options, including deferred payments and installment arrangements.

➢     Activate and install the Klarna for WooCommerce plugin.

➢     Navigate to WooCommerce > Settings > Payments.

➢     Enable Klarna and provide your Klarna merchant information.

➢     Set the configurations to provide BNPL options during the checkout process.

Step 3: Configure payment settings

After you have enabled your desired payment methods, it’s time to configure your payment settings. Follow the simple steps below:

➢     Setting the default currency.

➢     Configuring payment notifications for both the store owner and the customer.

➢     Setting up automatic invoicing and receipt generation.

➢     Enabling security features like SSL to protect customer data during transactions.

Step 4: Test run before final implementation

To avoid initial glitches, it’s best to do a trial before going live.

➢     Use sandbox or test modes provided by payment gateways to simulate transactions.

➢     Complete a few test orders to verify that payments are processed, and orders are updated correctly.

➢     Check that notifications and receipts are generated and sent appropriately.

Step 5: Monitor and Manage Transactions

Once your payment methods are live, regularly monitor transactions and manage payments from your WooCommerce dashboard:

➢     Use the Orders section in WooCommerce to track order statuses and payment details.

➢     Reconcile transactions with your bank statements and payment gateway reports.

➢     Handle refunds, chargebacks, and disputes through your payment gateway’s interface.

Conclusion

Appropriate WooCommerce payment methods are a critical consideration for online enterprises. Ideal WooCommerce payment plugins provide several payment alternatives, each with benefits that can increase customer satisfaction, which translates into higher conversions. By combining the correct tools with tried-and-true best practices, you'll be able to manage transactions quickly and efficiently, speeding up operations while securing payments received through your WooCommerce site.

FAQs

Are WooCommerce payments secure?

All credible WooCommerce Payments providers are PCI-DSS compliant and have advanced encryption mechanisms to ensure safe transactions.

Which is the fastest payment processor for WooCommerce?

Stripe and WooCommerce payments, with their quick transaction and fund transfer times, are commonly considered the fastest payment processors.

What is the best WooCommerce payment plugin?

It depends on your business requirements. For a feature-rich platform, you can look at Stripe; for cost-effectiveness, Wonderful has an amazing offer, and for native integration, WooCommerce Payments is a great choice.

What is the best way to accept payments on WooCommerce?

To cater to a larger audience, it’s best to have multiple options. For instance, you can opt for PayPal for its global reach and Klarna for BNPL. Wonderful is ideal for domestic instant payments.

Which payment service has the lowest fees on WooCommerce?

When it comes to a reliable, low-cost WooCommerce payment plugin, you need not look beyond Wonderful. Our Plus Plan includes 2000 transactions at £19.99, with no hidden charges and is one of the best offers in the market.

Photo by Christin Hume on Unsplash

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